A natural person as well as an equity firm can decide to allocate its capital in those companies with a transparent ethical culture. They can therefore decide to avoid investing in industries such as tobacco, pornography, weapons etc.

When you decide to make a social investment, you have to take into consideration many variables. First, it goes without saying that you need to know the financial situation of the company you plan to invest in. That is, analyze the balance and gauge factors such as the industry of reference, the management model, competitors, long-term perspectives and so on. Then, you have to estimate the ROE (return on equity) and compare it with the average market return you expect to gain. You can use the CAPM (capital asset price model) methodology to have an objective and solid benchmark. We suggest you rely on a bank or a fund to better manage these aspects.